Thursday, September 14, 2017

State to raise stake in Andal airport

Calcutta: The Bengal government has decided to infuse around Rs 270 crore to bail out the beleaguered Andal airport in an attempt to revive the viability of the country's first such greenfield facility.

The cabinet sub-committee on industry and infrastructure today approved a proposal to push up the Bengal government's stake in the airport by 15 per cent, a departure from the recent trend of selling stakes in joint ventures.

"Besides pumping Rs 120 crore directly into equity, the state government will invest another Rs 150 crore through the preferential share route. This apart, the state will use 80 acres of land currently held by BAPL to rehabilitate people living in coal-belt areas. This will enable BAPL to get another Rs 140 crore from the Centre," said an official.

The state government currently holds 11 per cent stake in BAPL (Bengal Aerotropolis Projects Limited), the promoters of the project. With an additional investment of Rs 120 crore, the government's holding will move up to 26 per cent. Changi Airports India Pte Ltd - a subsidiary of Changi Airports International Pte Ltd (CAI) Singapore - will, however, remain the majority stakeholder with an equity of 31 per cent.
14/09/17 The Telegraph